Carry Trade Watch / Limit-Down in ES?

Discussion in 'Trading' started by The Kin, Sep 15, 2008.

  1. The dollar is at recent lows against the Yen. Currently 105.11 There is a strong correlation with the carry trade and the stock market. So if the dollar continues to weaken, we could be in for an excellent trading day tomorrow due to huge price moves. I wonder if we're going to hit overnight limit down.
  2. I SERIOUSLY DOUBT LIMIT DOWN OVERNIGHT.... the market will need to be open in the morning.. if futures are limit down then no one can buy or sell in the futures in teh morning...

    The idea is to trap people in the morning and then run it to limit down... that way when traders are stuck long in a limit down market .. whenit comes off limit it will really surge to the upside.. sorta like the opposite of a short squeeze.
    Trust me .. I have seen limit moves in traditional commodities adn teh idea is to trap people and put pressure on them ... if you are worried about LIMIT DOWN MOVE

    you can trade spreads and specify with your broker that it is a bonafide spread.. this way you can trade even if the futures are limit up or down... much safer on scary days
  3. 104.70...